Move over, Waymo & Tesla: Amazon’s Zoox robotaxis begin charging riders in Las Vegas

Amazon’s Zoox robotaxis have moved from testing to paid service in Las Vegas, marking a major step for the company’s driverless-car business. According to the Wall Street Journal, the electric vehicles are purpose-built taxis with no steering wheel, dashboard or pedals, and they can carry up to four passengers who sit facing each other.

Zoox, which Amazon bought for $1.2 billion in 2020, is also running free rides for riders in its San Francisco Explorers program, the Wall Street Journal confirmed. The company says its Las Vegas fares are priced about like the comfort tier of other ride-share services.

According to Entrepreneur, the rollout comes as Amazon looks to claim a share of a robotaxi market Goldman Sachs expects to grow to nearly $19 billion by 2030, from $376 million last year.

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Rules, risks and competition

Regulators have placed clear limits on the service. The National Highway Traffic Safety Administration allowed Zoox to charge for rides in up to 5,000 vehicles over the next two years, but only on roads with speed limits of 45 mph or lower, Entrepreneur reported. The vehicles also face restrictions in heavy rain, snow, large amounts of leaves and other conditions.

Riders say the experience can feel unusual at first. Med Trimidal, a retired electrical engineer, said in The Wall Street Journal’s report that the lack of a driver felt disconcerting before the ride settled into something memorable. “It was exciting to witness something that seemed like science fiction,” he said, per the report.

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Amazon is entering a crowded field. Waymo already operates roughly 4,000 vehicles across several cities, while Tesla’s Cybercab is in volume production even though it has not received the same regulatory approval to carry paying passengers, Entrepreneur noted.

Zoox says building its robotaxi from the ground up helped it refine the design more quickly. According to the Wall Street Journal, the company now has about 100 vehicles and assembles them at a Hayward, Calif., plant that can produce as many as 10,000 robotaxis a year.